Tuesday, June 28, 2016

U.S.Treasury Secretary: Brexit Likely Won’t Spark a Financial Crisis

While there have been some economic “headwinds” in the wake of the UK.’s Brexit vote to leave the E.U., there’s no indication that it will lead to another financial crisis, U.S. Treasury Secretary Jack Lew said during an appearance CNBC on Monday.

“There is no sense of a financial crisis developing,” Lew said. “Obviously this is a change in policy that has implications which change the decisions investors make so I’m not saying there’s not an impact in the markets.”

This is the way I am trading it in the EPJ Daily Alert. I don't see a major crisis and it is certainly not going to bother U.S. companies that do most of their business domestically.

But I even have a buy recommendation out on global bankster stocks, including Goldman Sachs and JPMorgan Chase. They have been hit very hard following the Brexit vote.

Walter Wriston former chairman and CEO of Citicorp (from 1967 to 1984) once said that an investment banker was someone who got between the wall and the wallpaper. I see Brexit as a new wall going up, which I'm sure the banksters will eventually figure out how to profit off of.

Short-term there has just been too much panic surrounding the banksters, worst case scenario they will have to move some of their operations from London to inside the newly configured EU.